Health Savings Accounts Essay
Health Savings account is a savings plan, established during the Medicare overhaul in 2003. This plan affects all lower and middle class working citizens. Savings account, free of charge and high deductible policies of insurance, and low cost characterizes the latest health account. A small number of companies provided this service in the same year of operation of this reform.Health Savings Accounts Essay
Consequences of more expenses
Health care expenditure from consumers’ pockets makes them have an informed choice of looking for affordable health plans, which fits their needs. By doing this, they would counteract directly with the health care’s rising value and protect the savings account owners against catastrophic problems of health.Health Savings Accounts Essay
In order to qualify as a member of the savings account, one must be below the age of 65 and have a high deductible income of $2000 for families and $1000 for single people (Feldman, 2004).
It is a supplement for financing services of health care. It accumulates expenditures of health care funds, just like accumulation of retirement funds as individuals retire. It also entails the withdrawal of funds without penalty for expenses of health, purchasing the long-term insurance of care or health, or other expenditures stipulated in the code of tax.
Today, it is necessary to have health care coverage. Productivity of employees and health can be affected by a lack of health insurance. Retaining of employees in health insurance, based on employment is in high demand and, therefore, many people do not have health insurance.
Since there is an increase in premiums for employers, there is a possibility of initiating plans of health insurance that are save cost. Such health accounts are alternatives for most of the employers thus, increase in the number of health plans (Openshaw, 2004).
Competition
Individuals possess and manage an account of their own, without considering changes in place of work, therefore, have an incentive of finance the use of the resources of health care cost effective. The savings accounts of health empowers patients of cost-conscious in making decisions regarding health care and increases pressures of competition to reduce the costs of health care.Health Savings Accounts Essay
There have been a reduce of costs of administration and paperwork linked with insurance of health, and some of the people who do not have the insurances of health are capable of obtaining some protection of finance. Nevertheless, the savings account has failed to achieve the aim of universal access.
It is not helping people not employed or persons of incomes that are low and middle and cannot afford in contributing to this account (Marone, A., J., et. al., 2008). Consequently, it resulted in reduced insurance of health in some cases and expenses out of pocket for people needing services of health care.
Selection of adverse risks problems took place when a person who was healthy chose to establish a health account and obtained health insurance of high-deductible. This decision caused premiums become unaffordable for people who desire traditional insurance of health.
Conclusion
In conclusion, the savings account of health does not limit the consumer, but rather, expand their options. This is because the health plans driven by consumers propel the health account. The choice of hospital does not determine the health coverage because the consumer has information that is valuable such quality data and information of pricing.Health Savings Accounts Essay
With this, a new consumer would be presented in hospitals. A new consumer would be prevalent in services of planning that give the marketers of hospital an opportunity to get information from the behavior and trends of the consumer.
References
Feldman, A. (2004). The Health Care IRA. Are You Ready. New York: Times Co.
Marone, A., J.,& Theodor J. L.,& Robins, S., L., (2008). Health Politics and Policy. New York: Delmar Publishers.
Openshaw, J. (2004). Health Savings Accounts: Reaching Their Tipping Point. London: Penguin.Health Savings Accounts Essay